Poly Network returns almost half of stolen $600 million in crypto

abdelaziz Fathi

In a new twist to the hack saga of Poly Network, the exploiter has returned nearly half of the stolen assets – worth about $260 million – back to the decentralized finance network.

Poly Network said it had started receiving money back from the hacker, who drained $600 million in cryptocurrency from the DeFi protocol, sharing the details on Twitter about polygon tokens it has retrieved back.

The transactions included some extremely large amounts, such as one for $4.8 million sent back to the Poly Network addresses.

It’s not clear, however, if the attackers returned exactly the same balance of assets as were stolen, or sent back some of the value in other types of tokens. All told, by 11 a.m. ET, they handed back crypto assets worth roughly $258.

Poly Network’s incident is the biggest Defi hack and one of the biggest crypto heists ever.

“I think this demonstrates that even if you can steal cryptoassets, laundering them and cashing out is extremely difficult, due to the transparency of the blockchain and the use of blockchain analytics. In this case the hacker concluded that the safest option was just to return the stolen assets,” Tom Robinson, chief scientist of blockchain analytics firm Elliptic told CNBC.

Researchers at security company SlowMist said the attacker exploited some functions within Poly Network’s cross-chain interoperability protocol to pass in carefully constructed data to modify “the keeper of the EthCrossChainData contract.”

SlowMist said in another tweet that its security team has identified the attacker’s mailbox, IP, and device fingerprints through on-chain and off-chain tracking, and is tracking possible identity clues.

Poly Network, which posted a plea on Twitter asking the hacker for the money back, said the attack took place on across the binance, polygon and ethereum blockchains. It also involved various tokens, including shiba inu, wrapped ether, wrapped bitcoin, uniswap and a series of stablecoins.

Poly Network also published the hacker’s wallet addresses and urged crypto exchanges and miners to halt transactions from these addresses.

In response, Binance CEO Changpeng Zhao said they are aware of the exploit and that his exchange is coordinating with all security partners to proactively help.

“There are no guarantees. We will do as much as we can,” he concluded.

In addition, the issuer of Tether has frozen $33 million worth of the stablecoin that was part of the theft, Paolo Ardoino, its chief technology officer said on Twitter.

Poly Network is an interoperability protocol that allows for cross-chain sharing of assets and information. It allows applications and tokens on specific networks to connect with and transfer across to other participating blockchains, including Bitcoin, Ethereum, Neo, Ontology, Elrond, Zilliqa, Binance Smart Chain, Switcheo, Huobi ECO Chain and OKExChain.

Read this next

Digital Assets

BlackRock digs further into crypto with metaverse ETF

BlackRock, the world’s largest asset manager with almost $10 trillion in AUM, is set to launch a new metaverse ETF to help investors securely monetize on the booming immersive version of the internet.

Digital Assets

Binance wins license in New Zealand as rival Huobi shutters derivatives

Binance, the world’s largest crypto exchange by traded volume, has obtained licenses to operate in New Zealand, even after rival Huobi shutdown derivatives trading last month due to concerns about regulations.

Retail FX

Hong Kong busts perpetrators of ‘ramp and dump’ scam

Hong Kong’s financial watchdog, the Securities and Futures Commission (SFC), has charged thirteen suspects of market manipulation in a joint operation with the local police.

Institutional FX

TradingView integrates market data from German Tradegate exchange

TradingView announced that it ‎has increased data coverage to allow its users to receive information from ‎and get free access to the intra-day and tick data from Tradegate Exchange.

Retail FX

Spotware Systems introduces Custom Push Notifications for cTrader mobile apps

Spotware Systems, a technology provider for the electronic trading industry, is introducing a new push notification feature to alert mobile users of price swings and market fluctuations through their cTrader app.

Market News

The Week Ahead: 30 September from David Madden, Market Analyst at Equiti Group

Sterling dominated the headlines last week, as there were concerns the UK government might struggle to service its debt.

Inside View

How does the quality of signal providers affect your business?

A must-have onboarding process for brokers with investment services like PAMM, MAM, or copy trading

Technology

DBS deploys Nasdaq Trade Surveillance

“The confidence that markets and our clients have in DBS as a safe and trusted banking group is anchored on our ability to detect and respond to anomalous activity, which in turn calls for a robust surveillance and prevention infrastructure.”

Industry News

SEC charges Justin Costello and David Ferraro for securities fraud and posing as billionaire veteran

The Securities and Exchange Commission charged Cannabis executive Justin Costello and David Ferraro, an associate of Costello’s, for promoting the stock of several microcap companies on social media without disclosing their own simultaneous stock sales as market prices rose.

<